Saturday, February 6, 2010

A "for example" on congestiion pricing and the consumer

The consumer of a business item in Manhattan will know the arrival time of any cargo to much greater accuracy under congestion pricing. So there is this great reduction om transaction costs due to inventory mismatches. These efficiency gains come in the first generation, with no driver automation. Congestion pricing tends to choreograph traffic, accidents are much reduced and insurance can be bought by the tracked mile. Car rental risks drop.

Insurance wants a low cost set of sensors and warnings, congestion wants increased control of cruise control and steering. As the driver becomes redundant, his elimination brings huge cost savings for the poor man, who obtains the services of DeliverBot. A great mass of jobs are created as reduced transaction costs at the last mile make local value added an opportunity.

Consumers are made whole as the technology follows the goods all the way home. There is a cultural norm identified in Brad's electrical revolution. Since 1820, we have been listening to electrons, and soon learned that accuracy of the listeners increases without increasing marginal costs. Moore's Law has been known since 1870.

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